Snowflake Strikes $200M OpenAI Partnership, Earns $300 Price Target
Snowflake secured a $200 million partnership with OpenAI to integrate its models into Snowflake’s Cortex AI suite and execute a joint go-to-market strategy. RBC Capital maintains an Outperform rating with a $300 price target, and Raymond James also reaffirms Outperform supported by Snowflake’s $100 million AI-related annual recurring revenue.
1. Partnership Deal
Snowflake signed a $200 million deal with OpenAI on February 2 to embed OpenAI’s models into its Cortex AI products and launch a joint go-to-market initiative targeting enterprise clients.
2. Analyst Ratings
Following the announcement, RBC Capital reaffirmed its Outperform rating and $300 price target, while Raymond James also upheld an Outperform stance, citing the strategic value of large language model collaborations.
3. AI Revenue Growth
The OpenAI agreement builds on Snowflake’s reported $100 million in AI-related annual recurring revenue and follows a prior Anthropic collaboration, solidifying Snowflake’s role as a central data layer for enterprise AI deployments.